Traders and specialists work on the trading floor of the New York Stock Exchange in New York shortly before the closing bell on June 29, 2012. US stocks dived in the first five minutes of trade on Monday, July 23, 2012, joining a global sell-off on concerns that Spain will need a bailout after its borrowing costs hit record highs, and that Greece will be forced to exit the eurozone. AP PHOTO/DAVID KARP
NEW YORK—US stocks dived in the first five minutes of trade on Monday, joining a global sell-off on concerns that Spain will need a bailout after its borrowing costs hit record highs, and that Greece will be forced to exit the eurozone.
the Dow Jones Industrial Average tumbled 213.73 points, or 1.67 percent, to 12,608.84 in the first five minutes of trade.
The S&P 500, a broad measure of the markets, fell 20.99 points (1.54 percent) to 1,341.67, while the tech-rich Nasdaq dived 64.46 (2.20 percent) to 2,860.84.
Spain’s borrowing costs struck highs considered unsustainable, sparking fears that the eurozone’s fourth-largest economy may require a bailout. Speculation mounted that Greece may be close to exiting the single-currency bloc.
“Europe reared its ugly head again, as the crisis in Spain grabbed headlines,” said Tony Venosa at Schaeffer’s Investment Research.
Analysts at Wells Fargo Advisors said concerns about stability in the European Union were heightened “after the German vice chancellor voiced skepticism over Greece’s ability to meet its bailout commitments, renewing suspicions that the country could become insolvent and leave the common currency region.”